View from Seed

DECEMBER 4, 2014

Editor’s note: Understanding how to divide founder equity at a startup can be tricky, even to the point of reaching emotional riffs between founders. Below, Lee Hower offers advice for approaching these equity discussions objectively and properly. Sometimes co-founders put off the equity split question for some time.

Equity 315

Equity Founder Sweat Equity Cofounder 315

Startup Professionals Musings

NOVEMBER 9, 2010

All too many startups are founded simply on the basis of a new and exciting technology invented by an industrious technologist. Although their book is written for businesses of all sizes, I believe the principles apply especially to startups as follows: To increase return on equity invested. Intellectual property (IP).

Intellectual Property 231

Intellectual Property Startup IP Finance 231

Agile VC

DECEMBER 4, 2014

As a result, one of the trickier things co-founders tackle is determining the equity split amongst the founding group of individuals. Across both the startups I’ve personally been involved in (PayPal and LinkedIn) and the startups in which I’ve been an investor, I’ve seen a broad range of co-founder equity splits.

Cofounder 255

Cofounder Equity Founder Sweat Equity 255

Both Sides of the Table

JANUARY 21, 2010

If you’re a startup and you don’t have a close relationship with a few law firms you’re really missing one of the most important relationships that any entrepreneur can have. I write about some of the lessons in my post on Startup Mistakes. Shame about not getting it in legal writing that you owned the original IP.

Southern California 318

Southern California Silicon Valley IP Stock Options 318

The Startup Magazine

MARCH 10, 2018

Regardless of your industry, your startup needs legal assistance to ensure its growth remains safe and secure. You need lawyers to help you with incorporation and IP creation. But the startup is working diligently to build AI solutions. The Real Legal Solutions for Startups. appeared first on The Startup Magazine.

Software Review 71

Software Review Technical Review Artificial Inteligence Software 71

VC Cafe

SEPTEMBER 10, 2021

It takes a LOT of courage to say no to potential revenue, especially in the very early stages of a startup. Toya represents a new type of digital ,branded, social experiences that are already creating brand equity. Thinking ahead 5-10 yearsm we believe that Toya will be one of the leading IP owners of the virtual world.

Technical Review 178

Technical Review South Korea Due Diligence IP 178

David Teten

JANUARY 19, 2021

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. From traditional equity VC, Flexible VC borrows the option to pursue and reap the rewards of an outsized exit. Flexible VC 101: Equity Meets Revenue Share. Equity Ownership. Yes, typically preferred equity. Funder Category.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

YoungUpstarts

DECEMBER 14, 2016

In the current economic landscape, it’s common for startups and businesses to seek a buyout or acquisition — in fact, it’s frequently the goal from the start. Watch out for complex areas such as accounting for revenue, inventory, contingencies, equity instruments and consolidation. by Jeff Stark, Audit Partner at Sensiba San Filippo.

Acquisition 100

Acquisition Intellectual Property Technical Review Due Diligence 100

Agile VC

DECEMBER 4, 2014

As a result, one of the trickier things co-founders tackle is determining the equity split amongst the founding group of individuals. Across both the startups I’ve personally been involved in (PayPal and LinkedIn) and the startups in which I’ve been an investor, I’ve seen a broad range of co-founder equity splits.

Cofounder 173

Cofounder Equity Founder Sweat Equity 173

Both Sides of the Table

SEPTEMBER 25, 2010

When I first read Paul Graham’s blog post on “High Resolution&# Financing I read it as a treatise arguing that convertible notes are better than equity. Either would be fine with startups, so long as they can easily change their valuation. He’s fine with equity provided it’s cheap to paper it legally.

Finance 286

Finance Term Sheet Technical Review Warrant 286

Haystack

DECEMBER 29, 2018

It’s that time of year, time to look back and reflect on the most significant storylines in the tech, startup, and VC world. And, with that warning, I offer to you, the big stories in the startup and investing ecosystem of 2018, written in ascending order of importance and magnitude…. 6/ Venture Capital In Expansion Phase.

Technical Review 165

Technical Review Venture Capital Russia China 165

Scott Edward Walker

SEPTEMBER 28, 2011

And if the departing founder has a huge chunk of equity, it is unlikely that the company will find many sophisticated angels or VC’s interested in investing. IP Ownership. You must confirm that none of the founders’ prior employers has any rights to the venture’s IP because he or she was “moonlighting” while previously employed.

Vesting 89

Vesting Software Review IP Intellectual Property 89

Gust

DECEMBER 1, 2011

What is a startup really? Notice what is missing from this list of priorities: The company itself – that is, a business entity, most often a corporation , that will own the entire business (however defined), issue equity to founders, take investment capital , enter into contracts, make sales, pay employees and contractors, and so forth.

IP 114

IP Intellectual Property Equity Liquidity Event 114

The Startup Magazine

JUNE 26, 2020

Save these hard details for the professionals by consulting what startup lawyers will contribute to your launch immediately. If you are wondering what can a startup lawyer help with, your answers are on their way. Startup lawyers can help you decide on which structure is the best for you based on your finances, plans and goals.

Intellectual Property 154

Intellectual Property Startup SEC Stock Options 154

Both Sides of the Table

FEBRUARY 23, 2015

But not everybody has the right skills to build a highly successful and valuable startup from scratch. For some aspiring to be tech entrepreneurs, I often suggest a two-step process, as I argued in this post that “ The First Startup Founder You Need to Invest in Is You.” In fact, I would argue that most people don’t.

Technical Review 150

Technical Review Liquidation Preference Silicon Valley IP 150

YoungUpstarts

OCTOBER 14, 2011

With these encouraging statistics, perhaps it’s little surprise the local authorities realize that high-tech startups are horses worth putting money on. The hope is to get even more experienced investors and entrepreneurs to invest in local startups and provide them with systematic management guidance and mentorship.

Singapore 198

Singapore Technical Review Technology Incubator 198

The Startup Magazine

JUNE 18, 2018

It is defined as an online repository of information for storing and distributing shared documents, and can be used during business transactions such as mergers and acquisitions and private equity and venture capital funding. It should also protect your IP address and your shared documents.

Technical Review 81

Technical Review Due Diligence Merger Private Equity 81

Hunter Walker

MAY 13, 2023

“Worst case scenario we’ll sell to a larger startup or public company for about ~$1.5m I was on both sides of these transactions – buying startups for Google/YouTube and angel investing in high quality technical founders. per engineer.” of the time my answer is no f **g way].

Early Stage 117

Early Stage Cap Table Acquisition Sales 117

The Startup Magazine

JULY 25, 2019

Make sure you click here to learn 5 times you need to hire a startup attorney. They will fail to hire a startup attorney. Here are four crucial reasons you need to have a startup attorney on your team. . Here are four crucial reasons you need to have a startup attorney on your team. . Don’t make their mistake. .

Intellectual Property 82

Intellectual Property Hiring IP Startup 82

Both Sides of the Table

OCTOBER 17, 2019

I had just left Salesforce.com where I was VP, Products, after they had acquired my second startup. Bank as well as many startups like Gusto and MakeSpace and innumerable massive clients that weren’t on my approved list of clients I could disclose ;) but we partner with Google, Adobe, Salesforce and many others. Over the past 2.5

IP 223

IP Intellectual Property IRR Cofounder 223

The Startup Lawyer

JANUARY 28, 2010

Often a startup founder will desire to license his or her intellectual property to a new startup venture, rather than transfer ownership to the startup at incorporation via a technology assignment agreement. Founder IP License Problem. Quite simply, the startup will be without its only asset of value. Conclusion.

IP 53

IP Intellectual Property Founder Vesting 53

ithacaVC

DECEMBER 9, 2013

I use the term “pro forma” as often there are equity issues that need to be resolved prior to the deal closing that are NOT currently reflected in the company’s current cap table (like planned grants to advisors, co-founder true ups, etc.). Dealing with VCs Management Startup Life' And Happy Holidays!

Term Sheet 58

Term Sheet Cap Table Technical Review IP 58

This is going to be BIG.

FEBRUARY 2, 2012

You just don't wind up with $25 million to name a dorm unless you've gotten equity upside in something. I've been thinking a lot about what an innovation-friendly school looks like and have a few thoughts--and it doesn't just mean building labs or creating more flexible IP licensing schemes. Support the student club ecosystem.

Incubator 118

Incubator .Net Cofounder Software Developers 118

YoungUpstarts

APRIL 18, 2019

In the uber-competitive startup world, surviving is success in itself. Conventional wisdom says that 90% of startups will fail. The same is true for tech startups. So we should be teaching startups to work with what—and who—they have. For this reason, self-awareness is key to survival for startups.

Cofounder 127

Cofounder Startup Private Equity Equity 127

The Startup Lawyer

JANUARY 26, 2010

Now if your startup received a $5MM Series A investment from a venture capital firm, how many developers (that you can recall) would come out of the shadows of the internet and claim to be your startup’s long lost founder? The answer to this question depends on how well your startup secures its intellectual property.

IP 57

IP Intellectual Property Founder Stock Options 57

Scott Edward Walker

NOVEMBER 2, 2011

I’ve been a corporate lawyer for 17+ years, and there are certain fundamental legal mistakes that I’ve seen startups repeatedly make. Accordingly, I thought it would be helpful to provide a simple checklist for startups , which includes links to prior posts for a more detailed discussion. None of this is rocket science.

Accredited Investor 111

Accredited Investor Stock Options Delaware Silicon Valley 111

mashable.com

OCTOBER 16, 2010

During a presentation at Startup School at Stanford University earlier today, the prolific investor discussed the state of startup funding with a packed auditorium of students and entrepreneurs. These investors usually raise a smaller fund and make investments into startups that range in the hundreds of thousands of dollars.

Angel Investor 84

Angel Investor Venture Capital Social Media Technical Review 84

mashable.com

OCTOBER 16, 2010

During a presentation at Startup School at Stanford University earlier today, the prolific investor discussed the state of startup funding with a packed auditorium of students and entrepreneurs. These investors usually raise a smaller fund and make investments into startups that range in the hundreds of thousands of dollars.

Angel Investor 83

Angel Investor Venture Capital Social Media Technical Review 83

VC Cafe

SEPTEMBER 26, 2010

A fter years of talking with many of you in the Israeli startup industry, investors and entrepreneurs alike, I was invited to present some tips for entrepreneurs at the Launch48 conference in London this weekend. The talk was titled “Tips to make your startup attractive for investors&#. Sell your team, not your advisors.

Elevator Pitch 102

Elevator Pitch Incubator Technical Review Startup 102

www.greenhornconnect.com

OCTOBER 3, 2011

” Transitioning from partners in an informal collaboration to co-owners of an actual business may seem like a big step, but it is a necessary one that every successful startup eventually must take. 1) You and your partners have developed IP critical to your business. Boston Startup Weekend. are not met. October 2011. (1)

IP 40

IP Intellectual Property Limited Liability Company Boston 40

Scalable Startup

MARCH 7, 2012

Seth Levine, a successful VC with the Foundry Group , wrote a great blog entry about all the hype going on currently in the startup world. Currently Los Angeles is in what could be a startup renaissance or an apocalypse, dependent on how long the hype goes on. Worth the read. I’ve been harping about this a lot (too much?)

Software Review 26

Software Review Technical Review Los Angeles Due Diligence 26

The Startup Lawyer

MARCH 17, 2010

(7) Founders Equity Split: Depends on the Team, But Quickly and After the Awkward & Difficult Conversations. (8) 10) Consideration for Founders Shares: Cash & IP. (11) 11) Handling of “Lost Founders&# : Lock Down the IP. 2) Fees Paid to Pitch my Startup: $0. (3) 2) Fees Paid to Pitch my Startup: $0. (3)

Accredited Investor 112

Accredited Investor Delaware NDA Vesting 112

The Startup Lawyer

MARCH 17, 2010

(7) Founders Equity Split: Depends on the Team, But Quickly and After the Awkward & Difficult Conversations. (8) 10) Consideration for Founders Shares: Cash & IP. (11) 11) Handling of “Lost Founders&# : Lock Down the IP (then Wish Them Well). : Hell Yes. (9) 2) Fees Paid to Pitch my Startup: $0. (3)

Accredited Investor 112

Accredited Investor Delaware NDA Vesting 112

Feld Thoughts

JULY 31, 2013

I’m intensely proud of both the amazing startup community in Boulder as well as the many significant companies that have been – and are being – created in the little town of 100,000 people I call home. By the time we sold to Level 3, our total proceeds to equity owners and management were $225M. We paid them $8.7M

Bandwidth 147

Bandwidth Colorado Startup IRR 147

Austin Startup

AUGUST 20, 2017

August 20, 2017: This is another in my series of posts all leading up to a book on Startup Decision Making. One of the most common mistakes I see in startups is making decisions that lose sight of the context , including the past, present, and future. Sooner or later everybody in a startup knows what everyone else is getting paid.

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

Version One Ventures

OCTOBER 15, 2020

Given these key advantages, I believe that Lightning (or something like it) will ultimately eat all of the USD payment networks and create the foundation for MoIP (Money over IP). . One major player pushing forward this vision is Jack Mallers’ Strike , a simple app that allows anyone to use the Lightning Network with a USD bank account.

Networking 168

Networking Global OTC Security 168

ReadWriteStart

NOVEMBER 15, 2010

The law firm Goodwin Procter has launched a new resource for entrepreneurs that will help them navigate some of the legal and organizational challenges that startups face. The site also guides entrepreneurs through the document creation process, outlining some of the regulatory and administrative issues that startups need to address.

Founder 117

Founder Common Stock IP Startup 117